10/3 podcast: Carney's cabinet, lack of budget raise questions for Canadians
Prime Minister Mark Carney and his Liberal government are looking to set a new course after what some saw as an unlikely election victory late last month.
But his new cabinet selections, and the fact his government won't be tabling a budget have left a lot of political watchers scratching their heads.
National Post columnist Tasha Kheiriddin joins the show to discuss the biggest looming challenges for the Carney government, what to make of his cabinet picks, and what Canadians can take away from the fact that we won't see a budget this year.
Background reading:
Tasha Kheiriddin: Carney's cabinet still looks a lot like Trudeau's
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Toronto Sun
15 minutes ago
- Toronto Sun
EDITORIAL: Jobless numbers spell trouble
The need to grow the Canadian economy in the face of tough economic times was underscored by the release of the latest unemployment numbers by Statistics Canada on Friday. Photo by File Photo The need to grow the Canadian economy in the face of tough economic times was underscored by the release of the latest unemployment numbers by Statistics Canada on Friday. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The unemployment rate in May rose to 7.0%. That's the highest it has been since September 2016, excluding the 2020 and 2021 pandemic years, and a 12.9% increase from 6.2% a year ago in May. The Canadian economy generated a net increase of just 8,800 jobs in May, far short of the roughly 30,000 per month needed to keep pace with population growth. A total of 1.6 million Canadians were unemployed in May, an increase of 191,000, or 13.8%, compared to May 2024. A smaller share of people who were unemployed in April found jobs in May (22.6%), compared to a year ago (24.0%), and spent an average of 21.8 weeks searching for work, compared to 18.4 weeks in May 2024. Unemployment in Ontario (7.9%); Alberta (7.4%); Newfoundland and Labrador (9.7%); Prince Edward Island (8.2%); and Nunavut (9.0%) were all above the national average, as was the case in a number of cities, including Windsor (10.8%); Oshawa (9.1%); Toronto (8.8%); Calgary (7.8%); and Edmonton (7.3%). This advertisement has not loaded yet, but your article continues below. Canada recorded its largest merchandise trade deficit of $7.1 billion in April, the first full month of the tariff war with U.S. President Donald Trump, compared to $2.3 billion in March. The Organization for Economic Co-operation and Development last week projected meagre 1% economic growth for Canada this year and 1.1% in 2026, noting Trump's global tariff war is expected to hit the economies of Canada, Mexico, China and the U.S. hardest. Prime Minister Mark Carney proposed measures to bolster the economy on Friday, including eliminating federal barriers to interprovincial trade, increasing labour mobility and shortening the process for approving major infrastructure projects. Those are worthy long-term goals, since internal impediments to trade cost our economy $200 billion annually, raise consumer prices up to 14.5% and reduce economic growth as measured by gross domestic product up to 8% annually. But they are also long-term solutions, underscoring the importance of Carney's government producing a budget as soon as possible to reveal the Liberals' specific plans to boost the economy. For better or worse, Carney decided to delay releasing the budget until fall. Olympics Columnists World Editorial Cartoons NHL
Global News
an hour ago
- Global News
Carney says Canada to focus on peace, energy security and new partnerships at G7 meeting
Canada has unveiled its priorities for the G7 leaders' summit just one week before it gets underway in Alberta as the government defends its decision to invite India to the summit. Prime Minister Mark Carney's office says Ottawa's top priority for the summit will be strengthening global peace and security, which includes countering foreign interference and transnational crime, as well as improving responses to wildfires. His office also says Canada will focus on spurring economic growth by improving energy security, fortifying supply chains for critical minerals and accelerating the use of artificial intelligence. Lastly, Canada will discuss creating jobs by securing partnerships to open new markets and generate large infrastructure investments. In addition, Canada plans to use its invitation for guests outside the group to discuss how to secure a lasting peace in Ukraine, and to 'build coalitions with reliable partners.' Story continues below advertisement Carney is hosting the summit in Kananaskis, Alta., from June 15 to 17, welcoming U.S. President Donald Trump on his first visit to Canada during this presidential term. Canada is expecting to welcome leaders of the other liberal democracies that make up the G7: the United Kingdom, France, Germany, Japan, Italy and the European Union. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Analysts say the summit has come together under a time crunch, with Ottawa choosing the June date months ago before former prime minister Justin Trudeau resigned and a federal election campaign — which traditionally slows work in the public service. In addition to the G7 members, the host country can invite other leaders in order to give priority nations a voice at the summit. Carney revealed on Friday he had extended an invitation to Indian Prime Minister Narendra Modi, despite the RCMP accusing New Delhi of widespread acts of murder, extortion and coercion primarily against Sikh activists in Canada, including an assassination near Vancouver two years ago. Story continues below advertisement At least four other international leaders have accepted their invitations to Kananaskis: Ukrainian President Volodymyr Zelenskyy, Australian Prime Minister Anthony Albanese, South African President Cyril Ramaphosa and Brazilian President Luiz Inácio Lula da Silva. Mexican President Claudia Sheinbaum has said she's considering Canada's invitation. The NDP and major Sikh groups in Canada have condemned Carney's decision to invite Modi, arguing the move puts economic concerns ahead of human rights. Supriya Dwivedi, a former senior advisor to previous prime minister Justin Trudeau, derided the invitation as Carney's government 'thinking some Canadian lives matter more than others,' she wrote on the platform Bluesky. 'It will also be incredibly difficult to take anything this (government) says on transnational repression and foreign interference seriously given this pivot,' she wrote. Others have said it's time for Canada to manage security issues through a structured process with India and not let the criminal allegations and India's concerns about Sikh separatism dominate the bilateral relationship. At a virtual news conference Saturday, Foreign Affairs Minister Anita Anand stressed her government 'will not undermine' the RCMP investigation into alleged criminality by Indian agents. 'The fact that leaders from a number of countries have been invited to this meeting does not, and should not, detract from the importance of the independent investigation that is ongoing and the rule of law considerations which are absolutely paramount,' she said. Story continues below advertisement Anand said Carney decides which countries get an invitation, and was circumspect about what criteria Ottawa is using to choose which leaders to invite. 'The meeting will allow global leaders to discuss issues of global concern, which is the general purpose of this meeting, and we are honoured to be able to invite leaders to our country,' she said. 'The prime minister will be hosting these leaders for a discussion (on) very serious issues that affect the global economy and the geostrategic environment.'
Toronto Star
3 hours ago
- Toronto Star
Bank of Canada head Tiff Macklem says mandate should evolve in a ‘shock-prone' world
OTTAWA — Tiff Macklem is wearing an Edmonton Oilers pin as he reflects on coming very close to beating big odds. It's a significant day for the governor of the Bank of Canada: he's just laid out his reasons to the entire country and a global audience for keeping the central bank's benchmark interest rate steady for a second straight time. That night is also Game 1 of the NHL's Stanley Cup finals; Macklem ends his press conference with a hearty 'Go Oilers!' ARTICLE CONTINUES BELOW It's a rematch from last year's heartbreak, when the Oilers came oh-so-close to mounting a seemingly impossible four-game comeback against the Florida Panthers, only to fall short by a single goal in Game 7. Macklem, too, was almost safe to declare victory last year. He had just about secured a coveted 'soft landing' for Canada's economy — a rare feat that sees restrictive monetary policy bring down surging levels of inflation without tipping the economy into a prolonged downturn. 'We got inflation down. We didn't cause a recession,' Macklem said in an interview with The Canadian Press after the rate announcement Wednesday. 'And, to be frank, until President (Donald) Trump started threatening the economy with new tariffs, we were actually seeing growth pick up.' Fresh out of one crisis, the central bank now must contend with another in U.S. tariffs. Five years into his tenure as head of the Bank of Canada, Macklem said he sees the central bank's role in stickhandling the economy — as well as Canada's role on the world stage — evolving. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Many Canadians have become more familiar with the Bank of Canada in recent years. After the COVID-19 pandemic recovery ignited inflation, the central bank's rapid tightening cycle and subsequent rate cuts were top-line news for anxious Canadians stressed about rising prices and borrowing costs. That was all in pursuit of meeting the central bank's inflation target of two per cent, part of a mandate from the federal government that's up for review next year. Macklem said the past few years have led the Bank of Canada to scrutinize some of its metrics, like core inflation and how it responds to supply shocks in the economy. But he defends keeping the bank's inflation target, particularly at a time of global upheaval. 'Our flexible inflation targeting framework has just been through the biggest test it's ever had in the 30 years since we announced the inflation target,' he said. 'I'm not going to pretend it's been an easy few years for anybody. But I think the framework has performed well.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Macklem said, however, that he sees room to build out the mandate to address other areas of concern from Canadians, such as housing affordability. Whether it's the high cost of rent or a mortgage, or surging prices for groceries and vehicles, Macklem said the past few years have been eye-opening to Canadians who weren't around the last time inflation hit double digits in the 1980s. 'Unfortunately, a whole new generation of Canadians now know what inflation feels like, and they didn't like it one bit,' he said. Monetary policy itself can't make homes more affordable, he noted — in a nutshell, high interest rates make mortgages more expensive while low rates can push up the price of housing itself because they stoke demand. But Macklem said one of the things he's reflecting on is that inflation can get worse when the economy isn't operating at its potential or when it's facing great disruption. 'There is a role for monetary policy to smooth out some of that adjustment — support the economy while ensuring that inflation is well-controlled.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW He didn't offer suggestions on how the mandate might expand to address housing affordability specifically, but said 'the work is ongoing' and will be settled in meetings with the federal government next year. Right now, he's trying to make sure that the economic impacts from Canada's tariff dispute with the United States don't result in prolonged inflation. The Bank of Canada is not alone in debating how monetary policy ought to respond in what Macklem called a more 'shock-prone' world. The G7 Finance Ministers' Summit in Kananaskis, Alta., last month also featured round tables with the bloc's central bankers. Conversations at the summit were 'candid,' Macklem said, and though the nations issued a joint statement at the close of the event, that doesn't mean they agreed on everything. 'International co-operation, to be honest, has never been easy. It is particularly difficult right now, but that doesn't make it less important. That makes it more important,' he said. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'I do think Canada, as the chair of the G7, has a leadership role to play.' The Bank of Canada is also changing the way it has conversations with Canadians and the kind of data it considers. A day after the June interest rate decision, deputy governor Sharon Kozicki told a Toronto business crowd how the central bank is using data more nimbly, relying heavily on surveys and more granular information to make monetary policy decisions in an uncertain time. These sources offer a faster way to see what's happening on the ground in the economy than traditional statistical models allow. Macklem said the central bank would previously have dismissed most supply shocks as transitory — likely to pass without the need for central bank adjustments, such as rising and falling oil prices. But he said the Bank of Canada needs to be running a more 'nuanced playbook' now to respond to some increasingly common shocks: supply chain disruptions, trade conflicts and extreme weather to name a few. An overheating economy running up against a supply disruption is the kind of inflationary fire Macklem is trying to avoid in this latest crisis. 'The economy does not work well when inflation is high,' he said. 'And the primary role of the Bank of Canada is to ensure that Canadians maintain confidence in price stability. That's all we can do for the Canadian economy. That's what we can do for Canadians. And that's what we're focused on.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Later in the day on Wednesday, the Edmonton Oilers took Game 1 of the Stanley Cup finals. The Canadian team was down but roared back to win 4-3 in overtime. It's still early in the Bank of Canada's response to the latest global shock. But with any luck, Macklem's team might also get a leg up with lessons learned the last time they faced big odds. This report by The Canadian Press was first published June 7, 2025. Politics Headlines Newsletter Get the latest news and unmatched insights in your inbox every evening Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. Please enter a valid email address. Sign Up Yes, I'd also like to receive customized content suggestions and promotional messages from the Star. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy. This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Politics Headlines Newsletter You're signed up! You'll start getting Politics Headlines in your inbox soon. Want more of the latest from us? Sign up for more at our newsletter page.
